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ITG FAQ #20 Answer-How do I treat foreign persons working as independent contractors?

A nonresident alien may be entitled to claim a tax treaty exemption from withholding on some or all compensation paid for personal services. In order to determine if the treaty exemption is applicable, refer to the section entitled "Pay for Personal Services Performed" in Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities. Persons who wish to claim this exemption should provide you with Form 8233, Exemption from Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual.

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Page Last Reviewed or Updated: 20-Jan-2016